HSCEI Korea structured product losses spark regulatory fears

Potential losses for global banks and local firms estimated at $300 million


Heavy falls in China indexes linked to Korean structured products have hit dealers' hedging programmes hard with losses estimated at around $300 million across the Street and potentially the threat of regulatory intervention.

On August 3 the Hang Seng China Enterprises Index (HSCEI) – which tracks China firms listed in Hong Kong – stood at 11,009 and has now fallen precipitously to 9,400. This is a problem for the autocallable market where retail investors are selling put options because a

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: